Employment Law & Workplace Relations

With the changes to Australia’s industrial relations system brought by the Fair Work Act, there are a number of new issues for all employers to consider when drafting employment contracts. Employers may also find themselves in a difficult situation if some of their employers are covered by one award and some are covered by different awards.

The employment contract is a legally binding agreement between the employer and employee. The contract itself will set out the employee’s rights and responsibilities in employment and the employer’s obligations.

We advise businesses in updating and tailoring the employment contracts they use to each business’s own needs, and the obligations and regulations faced by each business.

If your business is growing from a simple “one man show” and you are employing people for the first time we also draft employment contracts for start up businesses.

We can also provide employees with advice on the contracts that they have been provided with by their employers. Some contracts contain terms that our clients do not wish to be bound by or do not understand.

From time to time you may need to let go of employees. It is of upmost importance that you do this in accordance with the law or you may receive a claim against you for wrongful dismissal.

For more information on unfair dismissal visit our litigation page on employment law by clicking [here].

All employers in New South Wales are required to provide a workplace that complies with the relevant WHS and OH&S legislation and regulations. We advise and assist with this process. In particular you may wish to seek our assistance in drafting an OH&S/WHS policy for your workplace. This is a developing area of the law in this state. The duty that an employer owes to an employee under this regime now, arguably, extends to protecting employees from being victims of bullying by their fellow employees.

Contracts of employment may include a restraint of trade clause against an employee. Such a clause is designed to protect the interests of the employer after an employee’s employment ceases. A restraint on a person’s right to work or compete is considered unenforceable. However the Courts recognise that employers with employees who have specialist skills and access to confidential information etc have a need to protect their business. Therefore, it is important that the geographical area and length of time of the restraint is no more than is reasonably necessary to ensure the protection of the employer.

Restraint of trade clauses can take many forms but the most common clauses likely to be enforced relate to the following:

Employees who have specialist skills which have been acquired through the employer’s business;

• Disclosure of confidential information;
• Restraints restricted to clients and customers with which the employee has had personal dealings;
• Restraints relating to time which may be up to 12 months but preferably 6 months from the date the employee terminates his or her employment;
• A geographical restraint that relates to the reach of the employer’s business.

You should seek advice before signing your contract of employment so that you can fully understand what the restraint of trade means for you.